While giving a history of carried interest — Venetian merchants retaining a “carry” for the risks incurred on a voyage to deliver goods — the Board fails to note that private equity, real estate, and venture capital investors also take on considerable risk in their investments. It is only when the private equity entrepreneurial risks are successful and long-held capital assets — such as over 3,000 private equity-backed companies in the U.S. — lead to a significant profit, that carried interest is realized. In essence, once investors (limited partners) succeed, then private equity general partners succeed — in that order. Why do so many private equity-backed companies prosper?